ARIZONA HOUSE OF REPRESENTATIVES

Fifty-sixth Legislature

First Regular Session

HB 2622: cost sharing; health coverage; report

Sponsor: Representative Hendrix, LD 14

Committee on Regulatory Affairs

Overview

Includes in the report to the Joint Legislative Audit Committee (JLAC), any restrictions on the form or amount of cost sharing related to a health plan benefit issued by an insurer, hospital, medical, dental, optometric or other health care services organization.

History

Statute currently requires the submission of a report to JLAC when an individual or organization advocates for any legislative proposal to mandate certain health coverage by an insurer, hospital, medical, dental, optometric or health care service corporation, organization, or any component of individual or group policies (Insurer). The person or legislator must submit the written report that explains the statutory factors (A.R.S. 20-182), including the social and financial impact and the effectiveness of the treatment or service. Currently, the person or legislator must submit the report by September 1 prior to the legislative session for which the legislation is proposed.

JLAC then assigns the written report to the pertinent legislative committee of reference (COR). The COR will hold at least one public hearing, take public testimony and make final recommendations, which are included in the final report to JLAC, the governor, leadership of the State Senate and House of Representatives, and the director of the Department of Insurance and Financial Institutions by December 1 of the year of the report.

Provisions

1. Requires the written report to JLAC to also include any restrictions on the form or amount of the cost sharing applied to a health plan benefit issued by an Insurer. (Sec. 1)

2. Stipulates that the report must assess the social and financial impacts of the coverage or cost sharing restrictions. (Sec. 1)

3. Modifies the report factors to include the cost sharing restrictions for both the social and financial impacts. (Sec. 2)

4. Adds factors to the financial impact that must be included in the report as follows:

a) the impact on other policyholders that do not use the treatment or service subject to the mandated coverage or cost sharing restriction; and

b) an analysis of whether the state will be required to defray the costs that a treatment or service may add to the federal marketplace subsidies. (Sec. 2)

5. Makes technical and conforming changes. (Sec. 2)

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9. HB 2622

10. Initials DC Page 0 Regulatory Affairs

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